Orange County’s biggest private companies saw their 2022 sales return to slow growth after a roaring 2021.
The 34 companies on the Business Journal’s annual list reported a 1.4% increase in revenue to a combined $101.8 billion. That compares to a 25% jump in revenue in 2021 and a 1% increase in 2020.
The increase wasn’t as widespread as prior years. Only 12 boosted their sales, including nine by more than double digits, compared to 19 that gained sales in 2021. Eight reported a drop in sales.
Top 3
Irvine-based Allied Universal, the world’s largest private security firm, retained its top spot by reporting a 2.2% increase to $19.4 billion.
In 2022, it made 11 acquisitions, including its first acquisition by its Event Services Business when it bought Century Event Security & Staffing of Florida.
“This important acquisition, a first for our event services business, aligns with our strategic growth strategy by providing additional operations and qualified staff in two of the nation’s most prominent cities for exhibitions and events,” Steve Jones, Allied Universal global chairman and chief executive, said at the time.
Jones is aiming to expand to $25 billion in annual sales by 2026.
Allied’s biggest acquisition was 2021 when it paid $5.1 billion to acquire London-based G4S, which doubled its revenue and headcount. The company is the world’s sixth-largest private employer, reporting 800,000 employees. Its Orange County headcount increased 1.3% to 6,059.
No. 2 Fountain Valley’s Kingston Technology Corp., which was founded in 1987 by David Sun and John Tu, reported sales declined 2.1% to $15.6 billion. A year ago, its sales rose 8.7%.
It also reported its OC headcount fell 2.3% to 643; companywide employees rose 1% to 3,185.
No. 3 Newport Beach Pacific Life Insurance Co. saw sales fall 1.3% to $13.5 billion. In 2021, sales had climbed 18%.
“Last year’s drop is totally a function of 2021 having record sales,” CEO Darryl Button told the Business Journal. “The revenue decline wasn’t statistically significant.”
Its local headcount fell 4.3% to 1,586 as it consolidated its offices to two in Orange County. Companywide, it also fell 2.4% (see story, page 1).
$500M
The Business Journal’s annual list includes those with at least $500 million in annual sales.
Irvine once again was the most popular with 13 calling the city its headquarters, followed by Newport Beach with four and Orange with three.
The 34 firms reported their OC headcount fell 0.7% to 32,285 while their companywide employment was flat at 999,729.
The biggest local employee count increase percentage wise was 14% at No. 20 Brea-based Viewsonic Corp., which added 10 employees for a total of 80.
The biggest local decline was reported by New American Funding, which saw its local headcount fall by 37% to 612; its companywide headcount also fell 21% to 3,480.
Like other mortgage originators, the Tustin-based company is seeing steep declines in revenue because the Federal Reserve has raised benchmark interest rates.
New American Funding reported the list’s biggest drop in sales, which fell 36% to $935.2 million.
It also fell the most on the list, dropping to No. 24 from No. 16 a year ago.
Dropping off the list this year was Irvine-based AAG, a provider of reverse mortgages that reported $700 million in sales in 2021. It was sold in the first quarter to Plano, Texas-based Finance of America Companies Inc. (NYSE: FOA) for about $90 million in cash and stock.
